Architects and engineers have shown time and time again that a triangle is the superior shape for making strong structures that hold their form and create stability. One side of a triangle may be able to bear some weight for a limited amount of time, but when the three sides are brought together it creates a structure that can withstand pressures of the heaviest objects. This concept is no different when it comes to building a strong workers’ compensation program that makes a significant impact for your insureds.
Your claims team is very often the face of your organization investigating and handling workers’ compensation claims for their insureds. A claims teams’ effectiveness often hinges on timely reporting of claims from insureds, a thorough investigation done by the claims adjuster, usage of early return-to-work programs by the employer and use of cost containment programs throughout the life of the claim to keep medical costs controlled. These processes are the ingredients to a strong workers’ compensationclaim department, but to take your team to the next level, you need to look at the cooperation amongst your claims, underwriting and loss control departments and how they work together to create the best workers’ compensation experience for your accounts. Ask yourself, “What shape do they take?”
Many times carriers silo their three main operations of underwriting, claims and loss control. These groups are working toward the same goal, but running parallel to each other. All three departments are essential to success and profitability, but only when they work together as a cohesive unit, a triangle approach, will you see results that will make your company thrive year after year. If you are wondering how to determine the strength of your company’s workers’ compensation team, ask yourself the following questions:
• Can your underwriters clearly explain the importance of a return to work program for an account and how a claims reserves are affected by it?
• Can your claims team explain the impact their reserving practices have on an accounts’ experience modification rate?
• Can your loss control group demonstrate the decrease in premium an account could have if they were able to prevent one or more work injuries?
"Your claims team is very often the face of your organization investigating and handling workers’ compensation claims for their insureds."
If the answer to the questions above is “no,” you may have some work to do, but fear not. Through cross training amongst departments and improving internal communications your workers’ compensation department can rise to the next level.
To make yourtriangle as solid as possible, consider the following:
1. Have your underwriting team meet with claims staff to identify how they assess and identify risks in the various industries prior to writing a new account.
2. Share concerns and trends your claims adjusters are recognizing in specific industries with underwriting prior to renewing any account.
3. Identify and reveal safety concerns and injury trends the claims team is noticing with your loss control team.
4. Connect loss control with underwriting to analyze ongoing account hazards and the impact they may or may not be able to have on the businesses’ risk.
5. Routinely cross-training amongst departments so each team understands how their results influence each side of the triangle.
Improved internal communication and coordination amongst your triangle of claims, underwriting and loss control will create a better understanding of your book of business and help guide results in the right direction.
Once you fine tune your internal trianglethe focus can shift to building the external triangle of the carrier, the agent and the insured all working together to keep premiums reasonable, promote a safe work environment and grow business. The more those triangles strategically intersect, the more profitability will growand you can sit back and watch your workers’ compensation department take shape.
